Financial Services Tech Forum

My latest IDC MarketScapes assess 2018 worldwide anti-money laundering (AML) and know-your-customer (KYC) vendors providing solutions in financial services to the worldwide banking market. This research quantitatively and qualitatively assesses multiple characteristics that help explain a vendor's success and position in the marketplace relative to the vendor's peers.

These IDC MarketScapes cover vendors that provide AML and KYC solutions in financial services to the worldwide banking market. The evaluations are based on a standardized set of parameters from which IDC can produce comparative analyses of AML and KYC solution vendors in financial services. The technology vendors provided an in-depth assessment of their current capabilities and strategies, and their reference clients were interviewed to assess the vendor's ability to meet the financial…

Corporate treasurers are yet to be convinced about the benefits of open banking and application program interfaces (APIs). A majority of them (55%) attending the EuroFinance international treasury management show at Palexpo in Geneva, Switzerland, 26-28 September which attracted 2100 delegates, said it 'wasn't relevant' or they didn’t know about it when asked how they viewed the EU Payment Services Directive (PSD)2. This is the regulatory driver behind the trend in Europe.

There is some interest in the technology trend towards open APIs and ecosystems where new connectivity, data tools and services can be 'plugged' into more open banking systems in the future, with 29% of attendees at the EuroFinance 2018 day two session entitled New World of Banks saying in the live poll that they were 'exploring the trend', with the rest 'preparing for it'. The majority though were uninterested. [Separate ACT Conf.18 blogs 1 & 2 can be seen by clicking on the highlighted…

One of my key takeaways from the Association of Corporate Treasurers (ACT) Conference 2018 that I recently attended in Liverpool, UK, on 15-16 May, where 1100 treasurers and lots of commercial banks and vendors packed the ACC venue, was the re-emergence of virtual bank accounts as a hot topic.

The need for LIBOR benchmark reform and alternative risk-free reference rates (RFR) from 2021 onwards, was also much discussed at the annual ACT Conference, alongside other prominent topics like blockchain, PSD2, rising interest in real-time payments and how they align with liquidity risk management, but for me the virtualisation debate was fascinating.

A virtual account is effectively a ledger entry. Fundamentally, it’s a ledger account that allows a corporate treasurer to get a huge bank…

The Blockchain for Treasurers session at the Association of Corporate Treasurers (ACT) Conference 2018 that I recently attended in Liverpool, UK, explored the potential opportunities the technology might offer. But some in the packed room wanted a more basic explanation of what it is and how it might usefully be applied.

Use cases such as the Vodacoin tokenized crypto-currency that Vodafone experimented with to move money between 10 internal companies in a pilot to see if the technology could cut foreign exchange (FX) risk and provide other efficiency and speed benefits was mentioned as an example of how blockchain might help treasurers.

Other examples of intercompany netting; the we.trade application in the trade finance arena using the underlying distributed ledger technology (DLT); and ripple’s interest in…

The ‘Open Banking Revolution’, triggered by the second Payment Services Directive (PSD2), will see new, API-connected services brought to European consumers around the traditional core financial services, creating a more holistic banking experience. It is not just the regulation that is pushing banks to deliver customer-centric products and services. It is also the changing customer attitudes in the way they engage with their banks. It won’t be surprising if insurers are faced with a similar…

For those who believed journey towards digital transformation (DX) in banking to be really long and a multiyear effort with specific goals and objectives around markets and customers, revenue, and profit growth, which makes it further complicated – I have witnessed a Technology Revolution that can reduce your digital journey from years to months, which not only share the same abbreviation, that is, IDC, but also has the similar characteristic of being a complete solution for DX!!!

The term and notion of digital transformation is used extensively in banking and the media today, where every bank/FI is trying to prove their supremacy to be called a 'True Digital Bank'. Being digitally fit has not remained a business goal or destination anymore, rather, it has become a new way of being, working, and succeeding in the digital economy. Digital transformation has been the top priority for companies that are serious about ensuring that their businesses are relevant and a leader…

Microsoft CEO Satya Nadella hit a nerve during the closing panel discussion at Sibos 2017 in Toronto when he said when it comes to succeeding in artificial intelligence (AI) there is no such thing as "cool by association." Organizations with ambitions to succeed in AI and machine learning (ML) will have to do their homework first, in this case getting their data and governance in shape. There is no way around developing your own capability.

Attended Sibos 2017? Here the first blog of my busy and sometimes painful Sibos experience in Toronto 2017. Trying to capture the essence of dozens of meetings with our clients

Open banking is clearly one of the dominant themes at Sibos 2017 in Toronto. But there are massive differences in how vendors position their strategies and the concerns banks voice about it. How will it affect my core infrastructure? What comes next? And where should we go with it? Most vendors are getting really excited about their open banking offering, but there are also some doubts about how "open" their vision is and more importantly the "actions" that will crystallize.

An interesting trend has emerged in the 14 years that IDC Financial Insights has been tracking the performance of the top technology organizations that support the financial services industry worldwide. The Goliaths of the technology industry, those firms whose total revenues represent their breadth of solutions and services across many vertical industries, are losing ground to those relatively smaller IT firms that focus on financial services as their main markets. The shift has been dramatic, especially over the last 5 years, and it portends a future where industry focus may be they key to financial success.

2017 marks the 14th year that IDC Financial Insights has conducted its FinTech Rankings research, a quantitative "state of the industry" measurement for financial services-based revenues earned by the top 125 technology firms globally. The financial services industry is comprised of banking, insurance, and capital markets firms that buy hardware, software, and services from 3rd party IT providers. The ranked list of vendors can be found here: 2017 IDC FinTech Rankings

On September 11, 2017, the IDC Financial Insights team proudly announced the 2017 IDC FinTech Rankings Top 100 and Enterprise Top 25, and the Real Results winners at Finovate Fall NYC. In its 14th year, the IDC FinTech Rankings takes the opportunity annually to recognize those technology providers that are tirelessly working to provide solutions that solve our industry’s most pressing concerns.

Currently the focus is on transformation – what’s the strategy, who are the most qualified providers, and how do we get to the “Connected Financial Institution?” Digital Transformation (DX) is especially at the forefront of technology discussions, as it should be considering IDC believes that financial institutions will spend more than US$170 billion worldwide on DX, including both 3rd party and internal IT resources, in 2018, on a total IT spend of $450 billion worldwide. Also of interest is…